He might have selected Dex, the official directory for Qwest published by R.H. Donnelley Corp.

He could have picked Verizon's yellow page book, printed by Idearc Inc.

The Salt Lake Valley yellow pages book put out by Orem-based Phone Directories Co. was another possibility. So was Yellow Book USA, owned by British directory publisher Yell Group.

Instead, Uriarte decided to market U.S. Plumbing and Gas in The Gay Pages, a new directory launched this year by Salt Lake City businessman Sean Wright.

Little did Uriarte know that he was part of an emerging trend in this robust niche of the publishing industry.

"I saw their sign. I kind of thought about it for a minute. I went into their business and they sat me down and explained what they are, and how their book came about, and the cost of the ads and how they do things," he said.

"I took a couple of weeks, and the more I thought about it, the more I liked the idea. I had the money. I talked to my wife, and she said, 'Yes, let's do it.' ''

The risk Uriarte took when he decided to target his advertising dollars at the Salt Lake Valley's small but vibrant gay community paid off. His $800 investment quickly produced $8,000 in revenue. The ad paid for itself in the first week, when he got a job remodeling a house for a gay couple.

"I was afraid I was going to lose my money, but I didn't. It's actually worked out quite well, and I will absolutely advertise in it next year," Uriarte said.

The Gay Pages is an example of a gradual shift in the yellow pages business that was spurred by passage of the Telecommunications Act in 1996. The act, which changed how telephone companies can compete, forced yellow page publishers such as AT&T to sell their phone listings at reasonable prices to anyone who asked to buy them.

Today, 260 publishers put out 7,586 editions totaling 456 million books, according to Simba Information, a Stamford, Conn.-based company that studies the media industry. Collectively, the companies raked in $16.5 billion in revenue last year.

Although regional Bell companies still pull in most of the revenue, the picture is rapidly changing. Independent publishers accounted for just 4 percent of all revenue in 1995. This year, the figure is expected to be 29 percent, according to The Kelsey Group, a Princeton, N.J.-based market research firm.

In the Salt Lake City metropolitan area, four companies publish nine directories with a total circulation of 2.6 million copies - enough to supply every man, woman and child living between Salt Lake City and Ogden with two books, according to Simba.

The numbers are conservative estimates - they don't include The Gay Pages, which puts out 50,000 copies of its directory this year and plans to publish 75,000 copies next year, and other publishers. Wright plans to print 100,000 copies in 2009. He expects to top out at 125,000 a year later.

"It's a very profitable business on two points," said Dave Goddard, a Simba analyst. "One of those is you put out a book once a year and you get paid for it on a monthly basis. The other point is, with the Internet, people are constantly seeking what publishers already have in their data banks. So all they have to do is provide it."

The upshot can be huge profit margins. Established directories can return as much as 35 percent on an owner's investment, Goddard said.

Which is not to suggest that advertisers are gouged. In 2004, advertisers received $53 in sales for every dollar they spent on yellow pages advertising, according to CRM Associates, a Boulder, Colo.-based company that does research for the yellow pages industry.

If true, that's better than other mass media. The Internet generates $52 in sales for each dollar an advertiser spends. Newspapers return $20 for every $1 invested, according to CRM. TV is a distant fourth, returning just $9.

"Anytime they use the yellow pages, a consumer is ready to buy. They are not in there browsing. They are ready to make a purchase," said Michael Bingham, chief financial officer of Phone Directories Co., or PDC, whose Orem-based company publishes directories in 15 Western and Midwestern states.

Bingham said the yellow pages market is not overcrowded. Having more than one publisher to choose from keeps advertising rates affordable for companies with limited marketing budgets. What's more, companies such as PDC, which publishes 15 directories just in Utah, can offer advertisers products that focus on tightly drawn audiences. Besides a Salt Lake City edition, PDC publishes books for Tooele, Park City, Ogden and Utah County.

Dex, which publishes 1.3 million local directories, launched a Spanish-language yellow pages three years ago, one of at least a couple in the market. It was folded into a larger English-language edition for two years. This year, Dex decided to publish a Spanish-language edition under a separate cover. Next year, the book will be expanded to cover Ogden and Provo.

"We did it because the product has grown and the market has asked for it," said Eunie Piper, Dex regional market manager.

Wright started The Gay Pages for a different reason. Salt Lake City has a reputation for intolerance toward the gay community, he said, and he wanted to develop a directory that would steer the community toward merchants who would appreciate it.

"We've had a huge response from the book. It has 120 clients. I've already exceeded that number for next year. Assuming I rebook everyone, I'll have roughly 300 [advertisers] for next year, and I'm actually aiming at 450. I assume the book will double itself in the third year."

Uriarte said The Gay Pages exposes his company to the attention of a slice of Salt Lake City's population that often is ignored by many businesses.

"They like high-end. They are professional people and they have [large] disposable incomes. They research, know what they want and they get it done," Uriarte said.

pbeebe@sltrib.com

Phone directories, by the book

* U.S. publishers: 260

* Directories: 7,586

* Books printed in 2006: 456 million

* Companies publishing books for Salt Lake City: At least five

* Local directories: At least 10

* Local books: 2.6 million

Community yellow pages offer advertisers editions that focus on tightly drawn audiences.

Spanish-

language directories are expanding beyond Salt Lake City.

Alternative directories such as The Gay Pages match merchants with niche audiences.

Digital yellow pages co-exist with print directories.